Supply Chain Management in the Emergin Context of Electonic Commerce

This research will examine the different kinds of supply chains by providing modeling variations that include coordination mechanism, production planning and scheduling, and logistics management in the emerging context of electronic commerce. In contrast to most of the supply chain literature that takes the existing supply chain as given and attempts to optimize material flows or information flows, the research will focus on emerging forms of supply chain enhanced by new technologies such as open EDI, the Internet, intranets, and extranets. An observation in supply chain management, which recently gained popularity, the bullwhip effect, suggests that demand variability increases as one moves up a supply chain. Solutions for bullwhip effect include supply chain integration through information sharing and supply chain partnership. However, in emerging business-to-business electronic commerce, a perfectly competitive market is possible, where many suppliers and buyers can keep track of real-time demand and supply of a product, thus the price being adjusted promptly by market itself. Although problems such as quality assurance and increasing transaction/coordination cost may arise in return for reliable supply chain partners, causes of bullwhip effect such as demand forecast update, order batching, price fluctuation and shortage gaming may diminish in electronic marketplaces due to immediate information about the availability of products as well as price and demand. Such information is costly and difficult to get, unless strong partnership and information sharing exists between many supply chain parties. Hence, the first research question is: In terms of bullwhip effect, will market mechanism coordinated by electronic intermediaries reduce the demand distortion in upstream supply chain? If so, how effective is it compared to the hierarchy mechanism with vertical integration or information sharing? Enterprise resource planning (ERP) systems have become popular in 1990s with business process reengineering practices. ERP systems attempt to automate and integrate all functions in an enterprise’s value chain. With the burst of the Internet and electronic commerce, companies using or planning to use ERP, are beginning to demand interface functions that enable flexible communications among supply chain partners. Moreover, in electronic marketplaces, computerized agents (e.g. searching agent, purchasing agent) and intermediaries are expected to be the solution for controlling huge amount of information and material flow. The second research question regarding this issue, thus, is: What kinds of information systems or technologies are needed in order to support a firm’s supply chain or supply chain as a whole, in particular in electronic markets? While optimizing supply chains with regard to information flows and/or material flows, we expect that the following components for supply chain management will clearly be identified as enablers of successful supply chain management. • ERP extensions/modules that link adjacent supply chain partners • Supply chain reengineering and Web-enabled supply chain via intranet and extranet • Agents/intermediaries that control the costs (purchasing, sales, distribution), quality (parts, finished product), and time (on-time delivery, online demand information

Contextual impacts on industrial processes brought by the digital transformation of manufacturing: a systematic review

The digital transformation of manufacturing (a phenomenon also known as "Industry 4.0" or "Smart Manufacturing") is finding a growing interest both at practitioner and academic levels, but is still in its infancy and needs deeper investigation. Even though current and potential advantages of digital manufacturing are remarkable, in terms of improved efficiency, sustainability, customization, and flexibility, only a limited number of companies has already developed ad hoc strategies necessary to achieve a superior performance. Through a systematic review, this study aims at assessing the current state of the art of the academic literature regarding the paradigm shift occurring in the manufacturing settings, in order to provide definitions as well as point out recurring patterns and gaps to be addressed by future research. For the literature search, the most representative keywords, strict criteria, and classification schemes based on authoritative reference studies were used. The final sample of 156 primary publications was analyzed through a systematic coding process to identify theoretical and methodological approaches, together with other significant elements. This analysis allowed a mapping of the literature based on clusters of critical themes to synthesize the developments of different research streams and provide the most representative picture of its current state. Research areas, insights, and gaps resulting from this analysis contributed to create a schematic research agenda, which clearly indicates the space for future evolutions of the state of knowledge in this field

Enhancing the Supply Chain Performance by Integrating Simulated and Physical Agents into Organizational Information Systems

As the business environment gets more complicated, organizations must be able to respond to the business changes and adjust themselves quickly to gain their competitive advantages. This study proposes an integrated agent system, called SPA, which coordinates simulated and physical agents to provide an efficient way for organizations to meet the challenges in managing supply chains. In the integrated framework, physical agents coordinate with inter-organizations\' physical agents to form workable business processes and detect the variations occurring in the outside world, whereas simulated agents model and analyze the what-if scenarios to support physical agents in making decisions. This study uses a supply chain that produces digital still cameras as an example to demonstrate how the SPA works. In this example, individual information systems of the involved companies equip with the SPA and the entire supply chain is modeled as a hierarchical object oriented Petri nets. The SPA here applies the modified AGNES data clustering technique and the moving average approach to help each firm generalize customers\' past demand patterns and forecast their future demands. The amplitude of forecasting errors caused by bullwhip effects is used as a metric to evaluate the degree that the SPA affects the supply chain performance. The experimental results show that the SPA benefits the entire supply chain by reducing the bullwhip effects and forecasting errors in a dynamic environment.Supply Chain Performance Enhancement; Bullwhip Effects; Simulated Agents; Physical Agents; Dynamic Customer Demand Pattern Discovery

Supplier-retailer collaboration in food networks: a typology and examination of moderating factors

The aim of this study is to examine Supplier-Retailer Collaboration (SRC) in food networks. Based on an extensive literature on the structural characteristics of trade collaborations, we develop a three dimensional construct of SRC which includes trade marketing, supply chain coordination, and relationship quality. We surveyed a large sample of Greek food retailers and their supplier and found that all three variables are positively related to collaboration efficiency. The findings were verified by a qualitative follow-up study. The differences between retailers and suppliers regarding collaboration factors are also discussed

Inventory drivers in a pharmaceutical supply chain

In recent years, inventory reduction has been a key objective of pharmaceutical companies, especially within cost optimization initiatives. Pharmaceutical supply chains are characterized by volatile and unpredictable demands –especially in emergent markets-, high service levels, and complex, perishable finished-good portfolios, which makes keeping reasonable amounts of stock a true challenge. However, a one-way strategy towards zero-inventory is in reality inapplicable, due to the strategic nature and importance of the products being commercialised. Therefore, pharmaceutical supply chains are in need of new inventory strategies in order to remain competitive. Finished-goods inventory management in the pharmaceutical industry is closely related to the manufacturing systems and supply chain configurations that companies adopt. The factors considered in inventory management policies, however, do not always cover the full supply chain spectrum in which companies operate. This paper works under the pre-assumption that, in fact, there is a complex relationship between the inventory configurations that companies adopt and the factors behind them. The intention of this paper is to understand the factors driving high finished-goods inventory levels in pharmaceutical supply chains and assist supply chain managers in determining which of them can be influenced in order to reduce inventories to an optimal degree. Reasons for reducing inventory levels are found in high inventory holding and scrap related costs; in addition to lost sales for not being able to serve the customers with the adequate shelf life requirements. The thesis conducts a single case study research in a multi-national pharmaceutical company, which is used to examine typical inventory configurations and the factors affecting these configurations. This paper presents a framework that can assist supply chain managers in determining the most important inventory drivers in pharmaceutical supply chains. The findings in this study suggest that while external and downstream supply chain factors are recognized as being critical to pursue inventory optimization initiatives, pharmaceutical companies are oriented towards optimizing production processes and meeting regulatory requirements while still complying with high service levels, being internal factors the ones prevailing when making inventory management decisions. Furthermore, this paper investigates, through predictive modelling techniques, how various intrinsic and extrinsic factors influence the inventory configurations of the case study company. The study shows that inventory configurations are relatively unstable over time, especially in configurations that present high safety stock levels; and that production features and product characteristics are important explanatory factors behind high inventory levels. Regulatory requirements also play an important role in explaining the high strategic inventory levels that pharmaceutical companies hold

Multi agent system for negotiation in supply chain management

Supply chain management (SCM) is an emerging field that has commanded attention and support from the industrial community. Supply chain (SC) is defined as the chain linking each entity of the manufacturing and supply process from raw materials through to the end user. In order to increase supply chain effectiveness, minimize total cost, and reduce the bullwhip effect, integration and coordination of different systems and processes in the supply chain are required using information technology and effective communication and negotiation mechanism. To solve this problem, Agent technology provides the distributed environment a great promise of effective communication. The agent technology facilitates the integration of the entire supply chain as a networked system of independent echelon. In this article, a multi agent system has been developed to simulate a multi echelon supply chain. Each entity is modeled as one agent and their coordination lead to control inventories and minimize the total cost of SC by sharing information and forecasting knowledge and using negotiation mechanism. The result showed a reasonable reduction in total cost and bullwhip effect

A novel framework for the use of workflow system in the integration of supply chain tiers

The global competition has imposed challenges to supply chain integration, mainly, during the process of obtain information to make demand management decisions. This paper proposes an integrated framework for data collection, analysis and results dissemination in the supply chain management (SCM), contributing to research and alternatives for \u201cThe Bullwhip Effect\u201d issue. In this sense, it is necessary to discuss the integration of supply chain management, Enterprise Resources Planning (ERP) functionality and others systems, to enlarge this scope to the total supply chain players. The ERP web-based tool and Workflow Systems (WS) can contribute to solve issues related to supply chain management. Starting from a detailed analysis of the research background regarding current SCM definitions and integration problems, Information Technology and Communication (ITC) development and WS in order to map and ensure flow fluency; the paper proposes a model to increase the overall integrations and an application in a case study for supporting the decisions that are aligned with the company\u2019s strategic objectives. This paper is divided in: research background; proposed model of the SC integration; case study, conclusions and future research